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- Bitcoin, Ethereum, Cosmos and more Week 27 2024
Bitcoin, Ethereum, Cosmos and more Week 27 2024
Keeping you updated on crypto, web3 and blockchain
TL;DR
Bitcoin Price Drops on Mt Gox Repayments
German Gov’t Moves $172M in Bitcoin
Vitalik Pushes for Faster Ethereum with EIP-7732
Grayscale Ethereum Trust Hits Premium Amid ETF Anticipation
BingX Launches USDC Perpetual Futures Trading
KUJI Trading Launch on Kraken
German MP Urges Halt to Bitcoin Sell-off
UK Crypto Advocates Urge Policy Continuity
and much more!
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Bitcoin Highlights of the Week
Bitcoin's price plummeted below $55,000 following Mt Gox's commencement of creditor repayments, marking a pivotal moment after the exchange's 2014 collapse. As Mt Gox began distributing approximately $9 billion in owed funds, Bitcoin saw a sharp 6% decline, hovering near $54,000.
The move sparked broader market turmoil, with the crypto sector shedding over $170 billion in 24 hours. Concerns intensified as Mt Gox transferred 47,000 Bitcoin, valued at $2.7 billion, potentially increasing selling pressure. Despite expectations of heightened volatility, analysts remain divided on the long-term impact, emphasizing that most creditors are unlikely to flood the market with recovered assets.
Hamilton, a crypto startup, has introduced tokenized US Treasury bonds, Hamilton U.S. T-Bills (HUST), on Bitcoin layer-2 blockchains like Stacks, Core, and BoB. The launch, claimed to be a first, aims to combine the stability of the Bitcoin network with the reliability of the US dollar.
This move enhances the Bitcoin network’s scalability and functionality, providing a yield better than stablecoins. Hamilton's CEO, Kasstawi, emphasizes the historic step towards financial independence and exposure to emerging markets.
A crypto wallet linked to the German government transferred over 3,000 Bitcoin, worth $172 million, to various locations, including Coinbase, Kraken, Bitstamp, and an unknown wallet. On July 4, blockchain investigator PeckShieldAlert reported a $75 million transfer of 1,300 BTC to these exchanges, while another 1,700 BTC went to an unidentified address.
These movements, alongside ongoing sales from the German and U.S. governments, could increase Bitcoin selling pressure. Since February 2024, the German government wallet has significantly reduced its 50,000 BTC holdings, impacting the market.
Tron founder Justin Sun has offered to buy the German government's $2.3 billion Bitcoin holdings off-market to minimize negative market impacts. Announced on July 4 to his 3.5 million followers, Sun aims to prevent further price drops caused by the government's ongoing Bitcoin sales.
The German government-linked wallet, suspected of holding Bitcoin seized from the pirate site Movie2k, has transferred significant amounts to various exchanges. These sales have raised concerns about continued downward pressure on Bitcoin prices. Sun's proposal seeks to mitigate this risk.
The global Bitcoin ATM network decreased by 334 machines in under 40 days, primarily impacting the US and Europe. In June, 107 Bitcoin ATMs went offline, ending a 10-month streak of growth. By July 5, an additional 227 ATMs were removed, with the US losing 182 in June and 239 in early July.
Europe saw a reduction of 29 ATMs, while Australia added 77 new machines. This decline may be due to global crackdowns on financial crimes, despite Bitcoin Depot reporting steady revenue growth independent of Bitcoin price fluctuations.
Ethereum Highlights of the Week
Ethereum developers introduced EIP-7732, a proposal aimed at improving the block validation process and accelerating the blockchain. This proposal separates block creation into two roles: consensus proposer and execution proposer. The Payload Timeliness Committee ensures timely submission of blocks, enhancing efficiency and security.
Vitalik Buterin supports this change to reduce validators' computational load and expedite transaction confirmation times. Despite improvements from EIP-1559 and the Merge, Buterin emphasizes the need for further speed enhancements. EIP-7732 promises faster transactions but may require a hard fork with backward-incompatible changes.
The Grayscale Ethereum Trust (ETHE) has shifted from trading at a discount to a 0.31% premium to its net asset value (NAV) ahead of anticipated spot Ethereum ETF launches in the U.S. Historically trading at a discount, ETHE's premium indicates investor optimism surrounding potential ETF conversions.
The turnaround follows speculation and regulatory developments, including the SEC's approval of spot Ethereum ETF filings. Despite recent discount fluctuations, the trust's premium suggests market confidence in forthcoming ETF approvals, mirroring the Grayscale Bitcoin Trust's path to ETF conversion earlier this year.
With the imminent launch of spot Ethereum ETFs in the US, analysts foresee Ethereum potentially outpacing Bitcoin in performance dynamics. K33 Research highlights factors such as Ethereum's historical underperformance against Bitcoin and expectations of initial volatility post-ETF launch followed by inflow-driven price gains.
The report underscores Ethereum's potential to benefit from sustained investments into ETFs, contrasting Bitcoin's anticipated selling pressures from Mt. Gox creditor repayments and ongoing government entity sales. As Ethereum prepares for a transformative phase, Bitcoin grapples with heightened volatility, currently trading around $61,000 amid market fluctuations.
A Texas judge has granted Consensys's request to expedite a decision on whether the SEC can regulate the MetaMask wallet as a broker-dealer. Federal judge Reed O'Connor will consider arguments from both sides, with a ruling expected around Christmas. This comes after Consensys, led by Ethereum co-founder Joe Lubin, challenged the SEC's attempt to label digital assets as securities.
In April, Consensys sought legal action to prevent the SEC from expanding its jurisdiction over digital assets. Although the SEC recently ended its investigation into Ethereum 2.0, it still pursued a lawsuit against Consensys for not registering MetaMask as a broker. Opening briefs are due by September 20.
The SEC has acknowledged the 19b-4 filing for Hashdex's Nasdaq Crypto Index U.S. ETF, which includes both Bitcoin and Ethereum. If approved by March 2025, the ETF will allocate 70.54% to Bitcoin and 29.46% to Ethereum. Hashdex, partnering with Coinbase Custody Trust Company, aims to bridge traditional financial markets with crypto.
This strategic move follows Hashdex's withdrawal of a previous spot Ethereum ETF proposal, adapting to market saturation with Ethereum products. The SEC's review process and public opinion will influence the final decision, potentially delaying approval. Industry experts anticipate significant interest and scrutiny leading up to the decision.
Cosmos Highlights of the Week
BingX, a prominent cryptocurrency exchange, recently introduced USDC-margined perpetual futures trading on July 4, signalling a significant advancement in its service offerings. This initiative aims to enhance trading flexibility and efficiency for users, aligning with BingX’s ongoing commitment to innovation and excellence in the crypto market.
The introduction of USDC perpetual contracts at BingX enables traders to settle margins, profits, and losses in USDC, ensuring a transparent and consistent trading environment. This innovation is set to improve transactional efficiency and convenience, particularly in markets like BTC/USDC futures.
Kujira (KUJI) debuts on Kraken, marking a milestone in decentralized finance (DeFi). As a decentralized ecosystem, KUJI democratizes wealth-building through innovative DeFi products. The native token, KUJI, functions as a utility for network fees, a governance token for protocol decisions, and a reward mechanism for staking.
KUJI’s listing on Kraken offers global exposure, with trading pairs in USD and EUR, precise trading at 4-decimal accuracy, and a minimum order size of 2 KUJI. Kraken ensures seamless integration for deposits and withdrawals, enabling traders to engage with KUJI’s sustainable DeFi ecosystem.
Opera Mini's MiniPay app, launched in September 2023, has rapidly gained traction with three million users, particularly in African markets like Nigeria, Ghana, Kenya, and South Africa. Recently, Opera integrated Tether's USDT and Circle's USDC into MiniPay's self-custodial crypto wallet, enhancing its functionality with a new feature called Pockets.
This feature allows seamless swapping between stablecoins like cUSD, USDT, and USDC, with minimal fees and no hidden costs, simplifying asset management within Web3. Jørgen Arnesen, Opera's EVP of Mobile, highlighted Pockets as a breakthrough in asset swapping, designed to address concerns over high transaction fees and unreliable payment options prevalent in African markets.
Injective, supported by Mark Cuban and Binance, has announced its integration with IoTeX, a platform combining blockchain and IoT technologies. This partnership aims to enhance asset transfer capabilities, offering users seamless token transfers and introducing new assets and decentralized applications (DePin apps) to Injective’s ecosystem.
IoTeX’s focus on decentralized machine finance aligns with Injective’s mission to provide a robust infrastructure for developing resilient DeFi applications on its L1 blockchain. This integration underscores Injective's commitment to expanding its platform’s capabilities, driven by its native token INJ, which powers governance and application value capture within its ecosystem.
Cronos zkEVM has launched its Pioneer Program, aiming to reward early supporters and incentivize community engagement ahead of its mainnet launch in Q3. This initiative allows users to earn loyalty points by actively participating in the testnet and mainnet activities, including interactions with designated dapps.
The Pioneer Program unfolds through various community and social quests, encouraging users to explore and utilize Cronos zkEVM's capabilities. Partnering with Veno Finance for the Cronos zkEVM Passage campaign, users can earn points by staking CRO tokens on Ethereum or Cronos EVM, with rewards slated for distribution upon mainnet launch.
Other Highlights of the Week
German MP Joana Cotar has urged the government to halt its rapid Bitcoin sell-off, suggesting that Bitcoin should be adopted as a strategic reserve currency. Cotar believes Bitcoin could diversify treasury assets, hedge against inflation, and promote innovation, enhancing economic resilience. She also invited politicians to the "Bitcoin Strategies for Nation States" event.
Since June 19, Germany has sold 7,583 Bitcoin, worth $434.9 million. Cotar argues that continuing the sell-off is counterproductive and recommends developing a comprehensive Bitcoin strategy, including state treasury holdings, Bitcoin bonds, and a supportive regulatory environment to foster Bitcoin-based innovation.
Following the Labour Party's landslide victory, crypto advocates in the UK urge the new government to continue the previous administration's efforts in cryptocurrency regulation. Labour's win shifts the political landscape, but industry leaders like Kraken's Bivu Das expect "business as usual" for crypto policy, emphasizing the need for continued innovation and growth.
Labour leader Keir Starmer will become the new Prime Minister, with Rachel Reeves named Chancellor of the Exchequer. CryptoUK, a self-regulatory trade association, called for clarity and proactive policymaking to strengthen the UK's position as a global crypto hub.
Taiwan Mobile, Taiwan's second-largest telecom provider, has obtained a virtual asset service provider (VASP) license from the Financial Supervisory Commission (FSC), marking its entry into the cryptocurrency market. Operating under the entity Fusheng Digital, a subsidiary of Taiwan Mobile, the company aims to establish its own cryptocurrency exchange.
This move comes after Taiwan Mobile's year-long pursuit of a foothold in the crypto sector, potentially through acquisition efforts as speculated by Bloomberg. Compliance with Anti-Money Laundering (AML) regulations was crucial for securing the VASP license, paving the way for participation in Taiwan's self-regulatory VASP association.
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